The sigh of relief of Wall Street It did not last long. The fear of one commercial war without exclusions of shots between United States And China and fears about the damage that i duties they could cause theworld economy they return with arrogance and sink the American lists, feeding the spectrum of one recession. “We are doing well, there are some transition costs but in the end everything will be fine,” he tried, without success, to reassure Donald Trump.
In Europe Instead, the financial squares toast 90 days on the rates announced by surprise on Tuesday by the American president, when the markets of the old continent were already closed. Paris filed the uphill session of 3.83%, Frankfurt of 4.53% e Piazza Affarithe best, of 4.73%. Also thanks to the decision of theEuropean Union to suspend the counterdat launched in response to the American hard punch. And as regards the awaited negotiations with the old continent, Trump was clear: “We will deal with the EU as a single block”.
After registering the best day from the Second World War, Wall Street then returned with his feet on the ground. The reality appeared very different from the euphoria of the day before: the Nasdaq He came to lose over 7%, it S & P 500 6% and the Dow Jones More than 5.5%. Under pressure also the dollardescended to the minimums since October 2024 against the other currencies, and Treasuryon which a wave of sales returned to hit that made the returns of the securities to 30 years of age to 4.85%.
If after a strong rebound like that of Tuesday a slowdown is considered physiological, the new collapse of Wall Street has its roots in real reasons. The clarification of the White house On China duties makes a frontal clash fear between the two economic superpowers. The US rates against Beijing – specified by the Administration – are overall at 145%: 125% announced by Trump for mutual duties adds in fact the 20% previously decided for the Fenanyl. Against the American narrow, China has made 84% duties into force on the Made in American and announced that it will import less films from the United States thus hitting that Hollywood Symbol of the States.
“We want the world rightly: we are working with many countries” on an agreement on the duties, said the tycoon during a meeting with its ministers. “We are doing something that had to be done 20 or 40 years ago,” said the president, specifying that the rates are bringing two or three billion dollars to the American coffers a day. Words that did not calm the spirits to Wall Street, where the slowdown of theinflation. The persistence of tensions on the dollar and Treasury – one of the main reasons that prompted Trump to announce a break in the duties – continues to shake investors showing how the American primacy on financial markets It is endangered by duties.
The 90 -day pause is also inner, according to some observers, prolongs uncertainty and offers no guarantee that an agreement is in the end is reached. The approach country by country that the administration intends to use to sign commercial intended arouses doubts because it extends the times and uncertainty, on which Trump’s unpredictability also weighs which, with a simple messenger on Truthcould radically change the situation in one sense or another. As he has widely shown he can do.
The only positive note for investors is that the Treasury Secretary Scott Bessenta dove friend of Wall Street, took the duties game in hand, subtracting it at least in part of the hawks Peter Navarro And Howard Lutnickrespectively the councilor and secretary of the Trump trade. It also lets hope for the go -ahead of the Room to the resolution for the president’s budget that opens the road to a tax cut.